Employee engagement has plummeted to its lowest level in over a decade, with many companies reporting that just 21% of employees are actively engaged. At the same time, worker burnout and exhaustion are soaring. Combined, these issues are costing organizations a staggering $8.8 trillion annually.

According to Gallup’s annual U.S. employee engagement trends, the top three drivers of disengagement are unclear expectations, feeling uncared for at work, and limited professional development opportunities.

Employees who feel valued and supported in their growth are more productive, innovative and likely to stay in their job. That’s not just good for company culture — it’s good for business.

Leaders who align recognition and skills development as part of the organization’s strategy, rather than as isolated perks, are seeing measurable improvements in performance and retention. Here’s how they’re achieving these outcomes.

Prioritizing real-time recognition

Recognition is one of the most immediate (and affordable) ways to boost morale and motivation. Many companies default to monetary rewards – bonuses, gift cards, raises – but it’s not just about the money.

While financial rewards are essential, recognition and feedback rank as top reasons employees choose to stay with or leave an organization. Without it, employees say they are twice as likely to quit their job.

“People are spending a lot of time at work and putting in a tremendous amount of effort,” said Irina Mocanu, senior talent management and organizational development advisor for Workleap. “There is a need to know, ‘Am I going in the right direction?’ and ‘Am I doing the right thing?’”

The key is making recognition meaningful, specific, and part of the organizational strategy, rather than a tool. It should have a cadence, such as once a week or every two weeks, and be tied to the individual’s impact and growth.

“I see leaders giving recognition every hour or every day. That’s not exceptional and it then becomes taken for granted,” said Cyril Boisard, Workleap’s people director. “It also needs to be tied to the impact or growth you’re trying to build in that person.”

Personalizing recognition is crucial. Some employees appreciate a public shoutout, while others prefer private praise, a few extra hours off, or being trusted with a stretch project.

Read the full article here.